The Delhi High Court on Monday dismissed a PIL challenging the Reserve Bank of India (RBI) and State Bank of India (SBI) notifications, which permits the exchange of Rs 2,000 banknotes without obtaining any requisition slip and identity proof, reported by ANI.
A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad rejected the plea moved by BJP leader and advocate Ashwini Kumaar Upadhyay.
Ashwini Kumar Upadhyay submitted that a large amount of currency has reached either an individual's locker or has “been hoarded by separatists, terrorists, Maoists, drug smugglers, mining mafias and corrupt people”. The plea submitted that the notifications were arbitrary, irrational and offend Article 14 of the Constitution.
The RBI has defended before the high court its notification, saying it is not demonetisation but a statutory exercise.
The central bank on May 22 advised all banks to stop issuing Rs 2000 denomination banknotes with immediate effect. However, the banknotes in Rs 2000 denomination will continue to be legal tender.
In a statement, the RBI on Friday said, "The Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time. The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of Rs 2000 banknotes was stopped in 2018-19. In pursuance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender.”